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Don’t Buy a Home as an Investment

After Costs, It Typically Doesn’t Yield Much. Think of It as a Place to Live.

By

Jonathan Clements

Dec. 27, 2014 8:08 p.m. ET

This year, I sold one apartment and bought another. It was a reminder that the words “home” and “investment” don’t belong in the same sentence.

Don’t get me wrong: I’m all in favor of home ownership. The tax breaks are impressive. Home ownership forces us to save: With each mortgage payment, we whittle down the loan balance, so eventually we own a valuable asset free and clear. Most important, a home provides us with a place to live.